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| 8-K - FORM 8-K - MSB FINANCIAL CORP | f8k_072916-5468.htm |
MSB FINANCIAL CORP. RELEASES SECOND QUARTER EARNINGS
Millington, New Jersey, July 29, 2016 – MSB Financial Corp. (NASDAQ: MSBF) (the "Company"), parent company of Millington Bank, reported today the results of its operations for the three and six months ended June 30, 2016.
The Company reported net income of $223,000 for the three months ended June 30, 2016, compared to a net loss of $33,000 for the three months ended June 30, 2015. Net income for the six months ended June 30, 2016 was $382,000 compared to net income of $183,000 for the six months ended June 30, 2015.
Net income per diluted common share was $0.04 for the three months ended June 30, 2016 compared to a net loss per diluted common share of $(0.01) for the three months ended June 30, 2015. Net income per diluted common share was $0.07 for the six months ended June 30, 2016 compared to $0.03 for the six months ended June 30, 2015. The results of operations for the three and six months ended June 30, 2015 reflect the results of operations of MSB Financial Corp., a federal corporation which was the predecessor company to the Company.
Total assets were $395.9 million at June 30, 2016, compared to $375.7 million at December 31, 2015, an increase of $20.2 million or 5.4%. During 2016, the Company experienced growth of $30.3 million or 11.5%, in loans receivable, net. Commercial and multi-family real estate loans continued to have the most growth during the first six months of 2016 as the Company continues to diversify its loan portfolio.
The following table summarizes loan balances and composition at June 30, 2016 and December 31, 2015:
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At
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At
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||||||||||
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June 30,
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December 31,
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||||||||||
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(In thousands)
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2016
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2015
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|||||||||
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Residential mortgage:
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|||||||||||
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One-to-four family
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$
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157,777
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52.4
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%
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$
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154,624
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57.1
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%
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|||
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Home equity
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35,033
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11.6
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35,002
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12.9
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|||
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Total residential mortgage
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192,810
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64.0
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189,626
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70.0
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|||
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Commercial and multi-family real estate
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80,014
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26.6
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59,642
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22.0
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|||||||
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Construction
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12,523
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4.2
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10,895
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4.0
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|||||||
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Commercial and industrial
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15,597
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5.2
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10,275
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3.8
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|||
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Total commercial loans
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108,134
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35.8
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80,812
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29.8
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|||
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Consumer loans
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463
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0.2
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|
493
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0.2
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|||
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Total loans receivable
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301,407
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100.0
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%
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270,931
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100.0
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%
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|||||
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Less:
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|||||||||||
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Loans in process
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4,331
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4,600
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|||||||||
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Deferred loan fees
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639
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417
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|||||||||
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Allowance
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3,869
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3,602
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|||||||||
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Total loans receivable, net
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$
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292,568
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$
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262,312
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|||||||
Total deposits at June 30, 2016 were $293.6 million compared with $262.6 million at December 31, 2015. Overall, deposits increased by $31.0 million, or 11.8% with most of the growth occurring in interest demand deposits, which increased $19.4 million or 46.3%. Noninterest demand deposits also increased $6.6 million, or 23.5%. Most of the growth in these two categories continues to be attributable to developing stronger relationships with our commercial and small business customers.
The following table summarizes deposit balances and composition at June 30, 2016 and December 31, 2015:
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At
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At
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||||||||
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(Dollars in thousands)
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June 30, 2016
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December 31, 2015
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Noninterest demand
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$ 34,787
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11.85
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%
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$ 28,173
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10.73
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%
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|||
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Interest demand
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61,295
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20.88
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41,893
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15.95
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|||||
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Savings
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103,383
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35.21
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102,196
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38.92
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|||||
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Money Market
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7,845
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2.67
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4,928
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1.88
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|||||
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Total demand deposits
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207,310
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70.61
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177,190
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67.48
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|||||
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Certificates of Deposit
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86,307
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29.39
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85,408
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32.52
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|||||
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Total Deposits
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$ 293,617
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100.00
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%
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$ 262,598
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100.00
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%
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|||
"Our staff completed our core data processing conversion midway through the second quarter. I am very pleased with the production levels we have maintained despite the resources required to complete the core conversion," stated Michael A. Shriner, President and Chief Executive Officer.
Mr. Shriner added, "We are prepared to compete in the ever changing and challenging landscape known as community banking and we feel that our 2016 year to date results are beginning to reflect our readiness. The addition of seasoned, commercial lenders are producing the growth and diversification we are seeking which has improved our overall results."
Forward Looking Statement Disclaimer
The foregoing release may contain forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements. Factors that may cause actual results to differ from those contemplated include our continued ability to grow the loan portfolio, the successful conversion of our core system and our continued ability to manage cybersecurity risks.
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Contact:
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Michael A. Shriner, President & CEO
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(908) 647-4000
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mshriner@millingtonbank.com
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MSB FINANCIAL CORP
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|||||||||
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(In Thousands, except for per share amount)
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(Unaudited)
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(Unaudited)
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|||||||
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Statement of Financial Condition Data:
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06/30/2016
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06/30/2015
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Total assets
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$395,908
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$416,850
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|||||||
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Cash and cash equivalents
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28,715
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67,436
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Loans receivable, net
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292,568
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245,013
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|||||||
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Securities held to maturity
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53,428
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81,606
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|||||||
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|||||||||
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Deposits
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293,617
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265,349
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Federal Home Loan Bank advances
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22,675
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30,000
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Total stockholders' equity
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75,383
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41,255
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Stock Information:
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|||||||||
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Number of shares of common stock outstanding
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5,953
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5,010
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|||||||
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Book value per share of common stock
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$12.66
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$8.23
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|||||||
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Closing market price
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$13.79
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$11.63
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Summary of Operations:
(In Thousands, except for per share amounts)
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(Unaudited)
For the three months ended June 30,
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(Unaudited)
For the six months ended June 30,
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|||||||
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2016
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2015
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2016
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2015
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||||||
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Total interest income
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$3,453
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$3,033
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$6,751
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$5,967
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|||||
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Total interest expense
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522
|
548
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1,032
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1,102
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|||||
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|||||||||
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Net interest income
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2,931
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2,485
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5,719
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4,865
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|||||
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Provision (credit) for loan losses
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190
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35
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320
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(17)
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Net interest income after provision (credit) for loan losses
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2,741
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2,450
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5,399
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4,882
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|||||
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|
|||||||||
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Non-interest income
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512
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169
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653
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332
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|||||
|
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|||||||||
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Non-interest expense
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2,909
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2,717
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5,473
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4,975
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|||||
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|||||||||
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Income (loss) before taxes
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344
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(98)
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579
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239
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|||||
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|||||||||
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Income tax (benefit) expense
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121
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(65)
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197
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56
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|||||
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Net income (loss)
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$223
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$(33)
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$382
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$183
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Net income (loss) per common share - basic
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$0.04
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$(0.01)
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$0.07
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$0.03
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Net income (loss) per common share - diluted
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$0.04
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$(0.01)
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$0.07
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$0.03
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Weighted average number of shares - basic
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5,744
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5,642
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5,744
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5,639
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|||||
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Weighted average number of shares - diluted
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5,822
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5,642
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5,818
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5,654
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|||||
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Performance Ratios:
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|||||||||
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Return on average assets annualized
|
0.23%
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(0.04)%
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0.20%
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0.10%
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|||||
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Return on average common equity annualized
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1.15%
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(0.32)%
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0.99%
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0.89%
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|||||
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Net interest margin
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3.17%
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3.03%
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3.15%
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3.02%
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|||||
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Efficiency ratio
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84.49%
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102.37%
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85.89%
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95.73%
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|||||
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Operating expenses / average assets annualized
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3.00%
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3.05%
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2.87%
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2.85%
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|||||
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For the three months ended
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||||||
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06/30/16
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06/30/15
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|||||
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Average Balance Sheet
(In Thousands)
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Average
Balance
|
Interest
Income/
Expense
|
Yield
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Average
Balance
|
Interest
Income/
Expense
|
Yield
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|
Interest-earning assets:
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||||||
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Loans Receivable
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$285,649
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$3,082
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4.32%
|
$244,361
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$2,578
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4.22%
|
|
Securities held to maturity
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62,585
|
331
|
2.12
|
80,483
|
435
|
2.16
|
|
Other interest-earning assets
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21,430
|
40
|
0.75
|
3,471
|
20
|
2.30
|
|
Total interest-earning assets
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369,664
|
3,453
|
3.74
|
328,315
|
3,033
|
3.70
|
|
Allowance for Loan Loss
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(3,718)
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(3,571)
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||||
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Non-interest-earning assets
|
21,833
|
32,110
|
||||
|
Total non-interest-earning assets
|
18,115
|
28,539
|
||||
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Total Assets
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$387,779
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$356,854
|
||||
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Interest-bearing liabilities:
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||||||
|
NOW & Money Market
|
$60,006
|
$37
|
0.25%
|
$47,941
|
$20
|
0.17%
|
|
Savings and club deposits
|
104,283
|
58
|
0.22
|
101,216
|
55
|
0.22
|
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Certificates of deposit
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85,702
|
244
|
1.14
|
88,658
|
275
|
1.24
|
|
Total interest-bearing deposits
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249,991
|
339
|
0.54
|
237,815
|
350
|
0.59
|
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Federal Home Loan Bank advances
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22,675
|
183
|
3.23
|
39,369
|
198
|
2.01
|
|
Total interest-bearing liabilities
|
272,666
|
522
|
0.77
|
277,184
|
548
|
0.79
|
|
Non-interest-bearing deposit
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33,964
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35,549
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||||
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Other non-interest-bearing liabilities
|
3,745
|
2,704
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||||
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Total Liabilities
|
310,375
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315,437
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||||
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Equity
|
77,404
|
41,417
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||||
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Total Liabilities and Equity
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$387,779
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$356,854
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||||
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Net Interest Spread
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2,931
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2.97%
|
2,485
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2.90%
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||
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Net Interest Margin
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3.17%
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3.03%
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||||
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Ratio of Interest Earning Assets to Interest Bearing Liabilities
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135.57%
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118.45%
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||||
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For the six months ended
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||||||
|
06/30/16
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06/30/15
|
|||||
|
Average Balance Sheet
(In Thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield
|
Average
Balance
|
Interest
Income/
Expense
|
Yield
|
|
Interest-earning assets:
|
||||||
|
Loans Receivable
|
$278,732
|
$5,920
|
4.25%
|
$239,899
|
$5,086
|
4.24%
|
|
Securities held to maturity
|
69,758
|
762
|
2.18
|
79,477
|
839
|
2.11
|
|
Other interest-earning assets
|
14,930
|
69
|
0.92
|
3,324
|
42
|
2.53
|
|
Total interest-earning assets
|
363,420
|
6,751
|
3.72
|
322,700
|
5,967
|
3.70
|
|
Allowance for Loan Loss
|
(3,670)
|
(3,579)
|
||||
|
Non-interest-earning assets
|
21,740
|
29,577
|
||||
|
Total non-interest-earning assets
|
18,070
|
25,998
|
||||
|
Total Assets
|
$381,490
|
$348,698
|
||||
|
Interest-bearing liabilities:
|
||||||
|
NOW & Money Market
|
$54,228
|
$58
|
0.21%
|
$46,810
|
$36
|
0.15%
|
|
Savings and club deposits
|
103,364
|
114
|
0.22
|
100,785
|
109
|
0.22
|
|
Certificates of deposit
|
85,070
|
481
|
1.13
|
90,647
|
570
|
1.26
|
|
Total interest-bearing deposits
|
242,662
|
653
|
0.54
|
238,242
|
715
|
0.60
|
|
Federal Home Loan Bank advances
|
26,214
|
379
|
2.89
|
35,597
|
387
|
2.17
|
|
Total interest-bearing liabilities
|
268,876
|
1,032
|
0.77
|
273,839
|
1,102
|
0.80
|
|
Non-interest-bearing deposit
|
31,793
|
30,748
|
||||
|
Other non-interest-bearing liabilities
|
3,783
|
2,793
|
||||
|
Total Liabilities
|
304,452
|
307,380
|
||||
|
Equity
|
77,038
|
41,318
|
||||
|
Total Liabilities and Equity
|
$381,490
|
$348,698
|
||||
|
Net Interest Spread
|
5,719
|
2.95%
|
4,865
|
2.89%
|
||
|
Net Interest Margin
|
3.15%
|
3.02%
|
||||
|
Ratio of Interest Earning Assets to Interest Bearing Liabilities
|
135.16%
|
117.84%
|
||||